Loan management tool

ABSTRACT

Embodiments of the present invention relate to methods and apparatuses for implementing, in connection with a HELOC account, a loan management tool. In some embodiments, the method includes: storing information relating to a loan account associated with a borrower, segmenting the loan account into one or more spend categories, and allocating purchases and payments, or portions thereof, made by the borrower to at least one of the one or more spend categories. In addition, the method may further include receiving from the borrower an input and calculating, based on the input, an output, wherein the output comprises at least one of the anticipated payoff date, the monthly payment amount, and the total saved interest.

FIELD

In general terms, embodiments of the present invention relate to methodsand apparatuses for implementing a tool to manage a loan, such as forexample a home equity line of credit, and in particular, embodiments ofthe present invention relate to methods and apparatuses for allowingconsumer to manage both the spending of funds obtained through a loan,as well as the repayment of funds spent, including the terms ofrepayment.

BACKGROUND

A home equity line of credit (referred to herein as a “HELOC”) is a lineof credit extended to a consumer from a lender, such as a bank, wherethe collateral for amounts borrowed under the line of credit is theborrower's equity in his or her home. Unlike a typical loan where theentire loan amount is deposited with the borrower at once, a HELOC setsa credit limit and a particular period of time (a “term”), and allowsthe borrower to draw funds from the line of credit at his or herdiscretion up to the credit limit during the specified term. Only thosefunds that are drawn from the HELOC bear interest until they are repaid,which repayment may occur at any time during the term, with minimumamounts generally due periodically depending on the terms of the HELOC.Thus, a HELOC somewhat mimics a credit card account more than a typicalloan. A key difference between a HELOC and other lines of credit andloan instruments is that the underlying collateral for the loan is thehome.

Many homeowners secure a HELOC with the intention of only using theborrowed funds for certain major items that are either necessary orprovide considerable value, such as education, home improvements, debtconsolidation, or medical bills. These borrowers also often havespecific ideas about budgeting the HELOC funds and managing exactly howand when they will withdraw, spend, and repay funds from their HELOC.However, there is no readily available tool that assist borrowers withexploring the various options they have with regard to budgeting,spending, and repayment. Because their personal budgeting strategies andspending history are not integrally connected to their HELOC account,borrowers may lose sight of or inaccurately apply personal budgetaryrestrictions and repayment plans. Additionally, they may feeloverwhelmed by the numerous statements and other paperwork relating totheir various financial accounts, mortgages, and HELOC account, whichcan prevent them from being exposed to restructuring options and paymentterms applicable to their HELOC that would help them reach theirfinancial goals. Indeed, many borrowers may miss the opportunity to addadditional credit to their HELOC in the event the value of their homeincreases. Accordingly, there is a need to provide methods andapparatuses that help borrowers better manage the spending and repaymentof their HELOC funds, and in particular, provide borrowers with an easyway to budget and accurately track spending of HELOC funds, determinethe best payment strategies and payment terms for their HELOC, and learnabout other options with regard to restructuring or adding additionalcredit to their HELOC.

SUMMARY OF SELECTED EMBODIMENTS OF THE PRESENT INVENTION

In general terms, embodiments of the present invention relate to methodsand apparatuses for implementing, in connection with a HELOC account, aloan management tool. In some embodiments, the method includes:identifying a HELOC account associated with a borrower, wherein fundsmay be drawn from the HELOC account by the borrower and used to make aplurality of purchase, recording in connection with the HELOC account atleast two spend categories and a spending limit applicable to each spendcategory, receiving an indication that a purchase has been made usingfunds from the HELOC account, associating the purchase with a firstspend category, and recording in connection with the first spendcategory an increase in the outstanding balance in the amount of thepurchase.

In particular, some embodiments of the present invention provide acomputer-implemented method including the following steps: storinginformation relating to a loan account associated with a borrower in astorage device, segmenting the loan account into one or more spendcategories, and allocating purchases made by the borrower to at leastone of the one or more spend categories. In some embodiments, thestoring, segment, and allocating steps are performed on a credit linetype loan account. In some embodiments, the storing, segmenting, andallocating are performed on a HELOC loan account.

In some embodiments, allocating purchases made by the borrower includes:receiving an indication that a purchase has been made using funds drawnfrom the loan account, associating the purchase with one of the one ormore spend categories, and recording in connection with the first spendcategory an increase in a balance of the spend category equal to theamount of the purchase. In some embodiments, the indication that thepurchase has been made is received from a device effectuating thepurchase, and associating the purchase includes associating the purchaseis associated with one of the one or more spend categories based oninformation provided by the device.

According to some embodiments of the present invention, the methodfurther includes: receiving a payment, and allocating at least a portionof the payment to at least one of the one or more spend categories. Insome embodiments, loan account is segmented into at least two spendcategories and the method further includes: receiving a payment,receiving an indication that a first portion of the payment should beapplied to a first spend category and a second portion of the paymentshould be applied to a second spend category, and recording inconnection with the first spend category a decrease in a first balanceof the first spend category in the amount of the first portion of thepayment and a decrease in a second balance of the second spend categoryin the amount of the second portion. In some embodiments, segmenting theloan account into one or more spend categories includes segmenting theloan where one or more spend categories is one of education, homeimprovement, debt consolidation, miscellaneous, and medical bills.

In some embodiments, the method further includes: storing in connectionwith each spend category a spending limit, and generating a notificationto the borrower when the difference between a balance of one of the oneor more spend categories and the spending limit for the spend categoryis either zero or less than a predefined amount. In some embodiments,the method further includes: receiving from the borrower an input,calculating, based on the input, an output, wherein the output comprisesat least one of the anticipated payoff date, the monthly payment amount,and the total saved interest. In such embodiments, the input may be oneof a desired payoff date, a desired monthly payment amount, and a totalsaved interest.

Some embodiments of the present invention provide a computer-implementedmethod including the following steps: storing information relating to aHELOC account associated with a borrower in a storage device, segmentingthe HELOC account into two or more spend categories, allocatingpurchases made by the borrower to at least one of the two or more spendcategories, receiving a payment; and allocating a first portion of thepayment is to a first spend category of the two or more spend categoriesand a second portion of the payment to a second spend category of thetwo or more spend categories.

In some embodiments, allocating purchases made by the borrower includes:receiving an indication that a purchase has been made using funds drawnfrom the HELOC account, associating the purchase with one of the two ormore spend categories, and recording in connection with the first spendcategory an increase in a balance of the spend category equal to theamount of the purchase. In some embodiments, allocating the first andsecond portions of the payment includes: receiving the indication that afirst portion of the payment should be applied to a first spend categoryand the second portion of the payment should be applied to a secondspend category, and recording in connection with the first spendcategory a decrease in a first balance of the first spend category inthe amount of the first portion of the payment and a decrease in asecond balance of the second spend category in the amount of the secondportion.

According to some embodiments, the method further includes: receivingfrom the borrower an input, calculating, based on the input, an output,wherein the output comprises at least one of the anticipated payoffdate, the monthly payment amount, and the total saved interest. In someembodiments, receiving from the borrower an input comprises receiving aninput that comprises one of a desired payoff date, a desired monthlypayment amount, and a total saved interest.

Some embodiments of the present invention provide a system including astorage device having stored therein information relating to a loanaccount associated with a borrower, computer readable program codestored on the storage device or a separate storage device, and aprocessor communicably coupled to the storage device or storage devices,wherein the computer readable program code comprises instructions thatwhen operated by the processor, causes the processor to do thefollowing: segment the HELOC account into one or more spend categories,and allocate purchases made by the borrower to at least one of the oneor more spend categories.

In some embodiments, the loan account is a credit line type loanaccount. In some embodiments, the loan account is a HELOC loan account.According to some embodiments, the system further includes acommunication interface configured to receive an indication that apurchase has been made using funds drawn from the loan account, and thecomputer readable program code further includes instructions that whenoperated by the processor, causes the processor to associate thepurchase with one of the one or more spend categories, and record inconnection with the first spend category an increase in a balance of thespend category equal to the amount of the purchase. In some embodiments,the computer readable program code further includes instructions thatwhen operated by the processor, causes the processor to associate apayment with the loan account, and allocate at least a portion of thepayment to at least one of the one or more spend categories.

In some embodiments, at least one of the one or more spend categories isone of education, home improvement, debt consolidation, miscellaneous,and medical bills. In some embodiments, the computer readable programcode further includes instructions that when operated by the processor,causes the processor to store in connection with each spend category aspending limit, and generate a notification to the borrower when thedifference between a balance of one of the one or more spend categoriesand the spending limit for the spend category is either zero or lessthan a predefined amount. In some embodiments, the system furtherincludes a communication interface configured to receive an input fromthe borrower, and the computer readable program code further includesinstructions that when operated by the processor, causes the processorto calculate, based on the input, an output, wherein the outputcomprises at least one of the anticipated payoff date, the monthlypayment amount, and the total saved interest. In such embodiments, theinput may be one of a desired payoff date, a desired monthly paymentamount, and a total saved interest.

Embodiments of the present invention also provide a computer programproduct comprising a computer-readable medium having computer-executablecomputer program code portions stored therein, wherein thecomputer-executable program code portions include: a first program codeportion configured to store information relating to a loan accountassociated with a borrower in a storage device, a second program codeportion configured to segment the loan account into one or more spendcategories, and a third program code portion configured to allocatepurchases made by the borrower to at least one of the one or more spendcategories. The computer program product may further include additionalcode portions configured to implement the methods described herein.

BRIEF DESCRIPTION OF THE DRAWINGS

Having thus described embodiments of the present invention in generalterms, reference will now be made to the accompanying drawings, wherein:

FIG. 1 is a block diagram illustrating technical components of a systemfor implementing a loan management tool, in accordance with anembodiment of the invention;

FIGS. 2A and 2B are flow diagrams illustrating a method of implementinga loan management tool, in accordance with an embodiment of the presentinvention;

FIG. 3 is a flow diagram illustrating a method of implementing a loanmanagement tool is provided, in accordance with an embodiment of thepresent invention;

FIG. 4 is a flow diagram illustrating a method of implementing a loanmanagement tool is provided, in accordance with another embodiment ofthe present invention; and

FIGS. 5A, 5B, 6, 7A, 7B, 8A and 8B are exemplary outputs of a loanmanagement system, according to one embodiment of the present invention.

DETAILED DESCRIPTION OF EMBODIMENTS OF THE PRESENT INVENTION

Embodiments of the present invention will now be described more fullyhereinafter with reference to the accompanying drawings, in which some,but not all, embodiments of the present invention are shown. Indeed, thepresent invention may be embodied in many different forms and should notbe construed as limited to the embodiments set forth herein; rather,these embodiments are provided so that this disclosure will satisfyapplicable legal requirements. Where possible, any terms expressed inthe singular form herein are meant to also include the plural formand/or vice versa, unless explicitly stated otherwise. Also, as usedherein, the term “a” and/or “an” shall mean “one or more,” even thoughthe phrase “one or more” is also used herein. Like numbers refer to likeelements throughout.

As will be appreciated by one of ordinary skill in the art in view ofthis disclosure, the present invention may be embodied as an apparatus(including, for example, a system, machine, device, computer programproduct, and/or the like), as a method (including, for example, abusiness process, computer-implemented process, and/or the like), or asany combination of the foregoing. Accordingly, embodiments of thepresent invention may take the form of an entirely software embodiment(including firmware, resident software, micro-code, etc.), an entirelyhardware embodiment, or an embodiment combining software and hardwareaspects that may generally be referred to herein as a “system.”Furthermore, embodiments of the present invention may take the form of acomputer program product that includes a non-transitorycomputer-readable storage medium having computer-executable program codeportions stored therein. As used herein, a processor may be “configuredto” perform a certain function in a variety of ways, including, forexample, by having one or more general-purpose circuits perform thefunction by executing one or more computer-executable program codeportions embodied in a computer-readable medium, and/or by having one ormore application-specific circuits perform the function.

It will be understood that any suitable computer-readable medium may beutilized. The computer-readable medium may include, but is not limitedto, a non-transitory computer-readable medium, such as a tangibleelectronic, magnetic, optical, electromagnetic, infrared, and/orsemiconductor system, apparatus, and/or device. For example, in someembodiments, the non-transitory computer-readable medium includes atangible medium such as a portable computer diskette, a hard disk, arandom access memory (RAM), a read-only memory (ROM), an erasableprogrammable read-only memory (EPROM or Flash memory), a compact discread-only memory (CD-ROM), and/or some other tangible optical and/ormagnetic storage device. In other embodiments of the present invention,however, the computer-readable medium may be transitory, such as apropagation signal including computer-executable program code portionsembodied therein.

It will also be understood that one or more computer-executable programcode portions for carrying out operations of the present invention mayinclude object-oriented, scripted, and/or unscripted programminglanguages, such as, for example, Java, Perl, Smalltalk, C++, SAS, SQL,Python, Objective C, and/or the like. In some embodiments, the one ormore computer-executable program code portions for carrying outoperations of embodiments of the present invention are written inconventional procedural programming languages, such as the “C”programming languages and/or similar programming languages. The computerprogram code may alternatively or additionally be written in one or moremulti-paradigm programming languages, such as, for example, F#.

It will further be understood that some embodiments of the presentinvention are described herein with reference to flowchart illustrationsand/or block diagrams of systems, methods, and/or computer programproducts. It will be understood that each block included in theflowchart illustrations and/or block diagrams, and combinations ofblocks included in the flowchart illustrations and/or block diagrams,may be implemented by one or more computer-executable program codeportions. These one or more computer-executable program code portionsmay be provided to a processor of a general purpose computer, specialpurpose computer, and/or some other programmable data processingapparatus in order to produce a particular machine, such that the one ormore computer-executable program code portions, which execute via theprocessor of the computer and/or other programmable data processingapparatus, create mechanisms for implementing the steps and/or functionsrepresented by the flowchart(s) and/or block diagram block(s).

It will also be understood that the one or more computer-executableprogram code portions may be stored in a transitory or non-transitorycomputer-readable medium (e.g., a memory, etc.) that can direct acomputer and/or other programmable data processing apparatus to functionin a particular manner, such that the computer-executable program codeportions stored in the computer-readable medium produce an article ofmanufacture including instruction mechanisms which implement the stepsand/or functions specified in the flowchart(s) and/or block diagramblock(s).

The one or more computer-executable program code portions may also beloaded onto a computer and/or other programmable data processingapparatus to cause a series of operational steps to be performed on thecomputer and/or other programmable apparatus. In some embodiments, thisproduces a computer-implemented process such that the one or morecomputer-executable program code portions which execute on the computerand/or other programmable apparatus provide operational steps toimplement the steps specified in the flowchart(s) and/or the functionsspecified in the block diagram block(s). Alternatively,computer-implemented steps may be combined with operator- and/orhuman-implemented steps in order to carry out an embodiment of thepresent invention.

Further, although many of the embodiments of the present inventiondescribed herein are generally described as involving a “financialinstitution,” other embodiments of the present invention may involve oneor more persons, organizations, businesses, and/or other entities thattake the place of, or work in conjunction with, the financialinstitution to implement one or more of the embodiments described hereinas being performed by the financial institution.

Disclosed herein are systems, methods, and computer program products forimplementing loan management tools. It is contemplated that most, if notall, of the aspects of the various embodiments of the invention may beimplemented for most loan products currently in use, as well as many newloan products that may be implemented in the future. For example, manyaspects of the invention have applicability in a credit line type loan,such as a HELOC or a credit card. To provide a more completeunderstanding of the various aspects of the invention, the belowdisclosure describes the systems, methods, and computer program productsof the present invention are described in relation to a HELOC account.It should be understood, however, that at least some aspects of theinvention have more general applicability for other types of loans andshould not be read as limited for only use in a HELOC loan accountenvironment.

Referring now to FIG. 1, a system 100 for implementing a loan managementtool is provided, in accordance with an embodiment of the presentinvention. As illustrated, the system 100 includes a network 110, a userinterface system 120, an account management system 130, a point of saledevice 140, and a real estate data source 150. FIG. 1 also illustrates aHELOC account 131 that provides a line of credit that can be drawn uponand a financial account 133 (such as a checking account) that can beused to pay for purchases or repay amounts to the HELOC account, whichare operatively connected (e.g., communicably linked) to the accountmanagement system 130.

Also shown in FIG. 1 is a borrower 115 that has access to the userinterface system 120 and the point of sale device 140. In someembodiments, the HELOC account 131 and the financial account 133 areassociated with the borrower 115 such that the borrower 115 may drawfunds from the HELOC account 131, deposit the funds drawn from the HELOCaccount 131 into the financial account 133, and use the financialaccount 133 to make purchases with the HELOC funds and make payments tothe HELOC account 131. In some embodiments, the HELOC account 131 may beused directly by the borrower 115 to make purchases, for example, wherethe borrower has a payment card or checks issued in connection with theHELOC account 131 that draw upon the HELOC account 131 directly whenused. According to other embodiments, the borrower 115 may be able touse the user interface system 120 to make purchases. For example, wherethe user interface system 120 is a mobile communications device, such asa mobile telephone, the device may be linked to the HELOC account 131 insuch a manner that the device may be scanned or otherwise utilized inconnection with the point of sale device 140 to make purchases directlyfrom the HELOC account 131. Even where the purchases are not madedirectly from the HELOC account 131, the user interface system 120 or amobile communications device distinct from the user interface system 120may be utilized to make purchases. In such embodiments, the device maybe linked to the financial account 133 and scanned or otherwise utilizedin connection with the point of sale device 140 in order to effectpayment from the financial account 133.

In the illustrated embodiment, the user interface system 120 ismaintained by the borrower 115, the point of sale device 140 ismaintained by a merchant (not shown), the real estate data source 150may be maintained by a third party service provider or the financialinstitution, and the account management system 130, along with the HELOCaccount 131 and the financial account 133, are maintained by a financialinstitution (not shown). It will be understood that, according to someembodiments, the borrower 115 may use the HELOC account 131 and/or thefinancial account 133 to make one or more purchases from the merchant byusing the point of sale device 140.

As shown in FIG. 1, the user interface system 120, the accountmanagement system 130, the point of sale device 140, and the real estatedata source 150 are each operatively and selectively connected to thenetwork 110, which may include one or more separate networks. Inaddition, the network 110 may include a local area network (LAN), a widearea network (WAN), and/or a global area network (GAN), such as theInternet. It will also be understood that the network 110 may be secureand/or unsecure and may also include wireless and/or wirelinetechnology.

The user interface system 120 may include any computerized apparatusthat can be configured to perform any one or more of the functions ofthe user interface system 120 described and/or contemplated herein. Insome embodiments, for example, the user interface system 120 may includea personal computer system, a mobile phone, a personal digitalassistant, a public kiosk, a network device, and/or the like. Asillustrated in FIG. 1, in accordance with some embodiments of thepresent invention, the user interface system 120 includes acommunication interface 122, a processor 124, a memory 126 having abrowser application 127 stored therein, and a user interface 128. Insuch embodiments, the communication interface 122 is operatively andselectively connected to the processor 124, which is operatively andselectively connected to the user interface 128 and the memory 126.

Each communication interface described herein, including thecommunication interface 122, generally includes hardware, and, in someinstances, software, that enables a portion of the system 100, such asthe user interface system 120, to transport, send, receive, and/orotherwise communicate information to and/or from the communicationinterface of one or more other portions of the system 100. For example,the communication interface 122 of the user interface system 120 mayinclude a modem, server, electrical connection, and/or other electronicdevice that operatively connects the user interface system 120 toanother electronic device, such as the electronic devices that make upthe account management system 130.

Each processor described herein, including the processor 124, generallyincludes circuitry for implementing the audio, visual, and/or logicfunctions of that portion of the system 100. For example, the processormay include a digital signal processor device, a microprocessor device,and various analog-to-digital converters, digital-to-analog converters,and other support circuits. Control and signal processing functions ofthe system in which the processor resides may be allocated between thesedevices according to their respective capabilities. The processor mayalso include functionality to operate one or more software programsbased at least partially on computer-executable program code portionsthereof, which may be stored, for example, in a memory device, such asin the browser application 127 of the memory 126 of the user interfacesystem 120.

Each memory device described herein, including the memory 126 forstoring the browser application 127 and other data, may include anynon-transitory computer-readable medium. For example, memory may includevolatile memory, such as volatile random access memory (RAM) having acache area for the temporary storage of data. Memory may also includenon-volatile memory, which may be embedded and/or may be removable. Thenon-volatile memory may additionally or alternatively include an EEPROM,flash memory, and/or the like. The memory may store any one or morepieces of information and data used by the system in which it resides toimplement the functions of that system.

As shown in FIG. 1, the memory 126 includes the browser application 127.In some embodiments, the browser application 127 includes a web browserand/or some other application for communicating with, navigating,controlling, configuring, and/or using the account management system 130and/or other portions of the system 100. For example, in someembodiments, the borrower 115 uses the browser application 127 totrigger and/or configure one or more aspects of the account managementsystem 130 that relate to implementing the loan management tool ofembodiments of the present invention. As another example, in someembodiments, the borrower 115 uses the browser application 127 to drawfunds from the HELOC account 131 and transfer the funds to the financialaccount 133. As another example, in some embodiments, the borrower 115uses the browser application 127 to create and/or select differentcategories of use for the HELOC funds, such as education, overdraftprotection, home improvement projects, etc. As another example, in someembodiments, the borrower 115 uses the browser application 127 to setcustomized spending limits within each category such that the sum of allthe spending limits does not exceed the credit limit of the HELOCaccount 131. As another example, in some embodiments, the borrower 115uses the browser application 127 to review the spending historyassociated with the HELOC account 131 and/or the financial account 133,and track the spending against the customized spending limits in eachcategory. As another example, in some embodiments, the borrower 115 usesthe browser application 127 to determine the availability for additionalcredit to be added to the HELOC account 131. As yet another example, insome embodiments, the borrower 115 uses the browser application to makepayments into the HELOC account 131 from the financial account 133.

In some embodiments, the borrower 115 uses the browser application 127to access an online and/or mobile banking account (not shown) forconfiguring these one or more aspects of the account management system130. In some embodiments, the user interface system 120 is a mobiledevice and the borrower 115 is able to manage his or her HELOC account131 as described herein using the mobile device. In some embodiments,the browser application 127 includes computer-executable program codeportions for instructing the processor 124 to perform one or more of thefunctions of the browser application 127 described and/or contemplatedherein. In some embodiments, the browser application 127 may includeand/or use one or more network and/or system communication protocols.

Also shown in FIG. 1 is the user interface 128. In some embodiments, theuser interface 128 includes one or more user output devices, such as adisplay and/or speaker, for presenting information to the borrower 115and/or some other user. In some embodiments, the user interface 128includes one or more user input devices, such as one or more buttons,keys, dials, levers, directional pads, joysticks, accelerometers,controllers, microphones, touchpads, touchscreens, haptic interfaces,microphones, scanners, motion detectors, cameras, and/or the like forreceiving information from the borrower 115 and/or some other user. Insome embodiments, the user interface 128 includes the input and displaydevices of a personal computer, such as a keyboard and monitor, that areoperable to receive and display information associated with offsetting aliability and/or accumulating rewards.

FIG. 1 also illustrates an account management system 130, in accordancewith an embodiment of the present invention. The account managementsystem 130 may include any computerized apparatus that can be configuredto perform any one or more of the functions of the account managementsystem 130 described and/or contemplated herein. In accordance with someembodiments, for example, the account management system 130 may includea computer network, an engine, a platform, a server, a database system,a front end system, a back end system, a personal computer system,and/or the like. In some embodiments, such as the one illustrated inFIG. 1, the account management system 130 includes a communicationinterface 132, a processor 134, and a memory 136, which includes anaccount management application 137, and online banking application 139,and a datastore 138 stored therein. As shown, the communicationinterface 132 is operatively and selectively connected to the processor134, which is operatively and selectively connected to the memory 136.

It will be understood that the account management application 137 andthe online banking application 139 can be configured to implement anyone or more portions of any one or more of the methods described belowand/or otherwise contemplated herein. For example, in some embodiments,the online banking application 139 is configured to utilize thecommunication interface 132 to provide online and/or mobile bankingservices to the borrower 115 via the network 110 at the user interfacesystem 120, such as, for example, any of the online and/or mobilebanking services described and/or contemplated herein, includingservices with respect to management of the HELOC account 131. As anotherexample, in some embodiments, the account management application 137 isconfigured to execute instructions input by the borrower 115 via theuser interface system 120 and communicated to the account managementsystem 130 via the browser application 127 and the network 110. Thus,according to some embodiments, the account management application 137 isconfigured to segment the HELOC account 131 into a set of spendcategories within the HELOC account 131 according to the instructions ofthe borrower 115, and as described in greater detail below. As anotherexample, in some embodiments, the account management application 137 maybe operable to process financial transactions, such as transfers andpurchases, initiated by the borrower 115 and involving the HELOC account131 and/or the financial account 133. In some embodiments, where theborrower 115 attempts to make a purchase with the HELOC account 131 orthe financial account 133 at the point of sale device 140, the accountmanagement application 137 may be configured to approve a paymentrequest from the point of sale device 140. Furthermore, in someembodiments, the account management application 137 is configured totrack the spending of the borrower 115 based on the transactions that itprocesses and compare the spending to the spending limits set by theborrower 115, as described in greater detail below.

It will be understood, therefore, that in some embodiments, the accountmanagement application 137 and the online banking application 139 areconfigured to communicate with the datastore 138, the user interfacesystem 120, the point of sale device 140, the real estate data source150, and/or any one or more other portions of the system 100. Forexample, in some embodiments, the account management application 137 isconfigured to send payment authorization information to, and/or receivetransaction data from, the point of sale device 140. As another example,in some embodiments, the account management application 137 isconfigured to receive data from the real estate data source 150 via thenetwork 160 and use the data to calculate additional home equityavailable in the borrower's home. As another example, in someembodiments, the account management application 137 is configured tocreate and/or send one or more notifications to the borrower 115 at theuser interface system 120 that explain, for example, that a payment isdue, that a particular spending limit in a spend category has beenexceeded or is likely to be exceeded, or that there is potential to addadditional credit to the HELOC account 131. It will be furtherunderstood that, in some embodiments, the account management application137 includes computer-executable program code portions for instructingthe processor 134 to perform any one or more of the functions of theaccount management application 137 described and/or contemplated herein.In some embodiments, the account management application 137 may includeand/or use one or more network and/or system communication protocols.

In some embodiments, the account management application 137 may beconfigured to utilize the communication interface 132 to receiveinformation associated with the HELOC account 131 in any way and/or inany form. In some embodiments, the account management system 130 isconfigured to utilize the account management application 137 to managethe HELOC account 131 for the borrower 115 by, for example, drawingfunds from the HELOC account 131 for the borrower 115, processing and/orposting transactions and purchases involving the HELOC account 131and/or the financial account 133, segmenting the HELOC account 131 intospend categories and setting associated spending limits, trackingspending of HELOC funds by the borrower 115 against the recorded limitsin each spend category, calculating the account balance for the HELOCaccount 131 overall and the balance in each spend category, receiving aninput from the borrower 115 such as a potential or desired monthlypayment or payoff date and calculating the minimum monthly payment due,the total interest to be paid and/or saved based on the monthly payment,and/or the payoff date for both the HELOC account 131 and the individualspend categories, implementing different interest rates in differentspend categories based on the preferences of the borrower 115, trackingthe value of the home and the equity of the home that is the collateralfor the HELOC account 131, communicating account statements andpredefined alerts to the borrower 115, processing a payment into theHELOC account 131 from the borrower 115, whether from the financialaccount 133 or otherwise, and/or the like.

In some embodiments, the online banking application 139 provides onlineand/or mobile services associated with the HELOC account 131 and thefinancial account 133 (e.g., online and/or mobile banking, etc.). Forexample, in some embodiments, the online banking application 139provides the borrower 115 with access to his or her accounts maintainedwith the financial institution via the browser application 127 of theuser interface system 120. Indeed, in some embodiments, the onlinebanking application 139 operates an online banking platform including anonline banking account associated with the borrower 115, which onlinebanking account, when accessed by the borrower 115 can be used to managethe various accounts of the borrower 115 held by the financialinstitution. It will be further understood that, in some embodiments,the online banking application 139 includes computer-executable programcode portions for instructing the processor 134 to perform any one ormore of the functions of the online banking application 139 describedand/or contemplated herein. In some embodiments, the online bankingapplication 139 may include and/or use one or more network and/or systemcommunication protocols.

In addition to the account management application 137 and the onlinebanking application 139, the memory 136 also includes the datastore 138.In some embodiments, the datastore 138 includes information associatedwith the HELOC account 131 and the financial account 133, including, forexample, account names, persons and/or entities associated with theHELOC accounts, addresses associated with the HELOC account 131 and thefinancial account 133, transaction data and/or transaction historyassociated with the HELOC account 131 and the financial account 133,information input by the borrower 115 and relating to the HELOC account131, including information about the spend categories and spendinglimits, information about the desired monthly payments or payoff datesfor the HELOC account 131 and the spend categories, and/or any othertype and/or amount of information. In some embodiments, the datastore138 is configured to store any information relating to implementing aloan management tool as described herein. In some embodiments, thedatastore 138 stores information associated with online and/or mobilebanking.

It will be understood that the datastore 138 may include any one or morestorage devices, including, but not limited to, datastores, databases,and/or any of the other storage devices typically associated with acomputer system. It will also be understood that the datastore 138 maystore information in any known way, such as, for example, by using oneor more computer codes and/or languages, alphanumeric character strings,data sets, figures, tables, charts, links, documents, and/or the like.Further, in some embodiments, the datastore 138 may include informationassociated with one or more applications, such as, for example, theaccount management application 137 or the online banking application139. It will also be understood that, in some embodiments, the datastore138 provides a substantially real-time representation of the informationstored therein, so that, for example, when the processor 134 accessesthe datastore 138, the information stored therein is current orsubstantially current. It will be understood that the embodimentillustrated in FIG. 1 is exemplary and that other embodiments may vary.For example, in some embodiments, the account management system 130includes more, less, or different components, such as, for example, anaccount manager (e.g., financial institution employee) user interface.

It will be understood that the HELOC account 131, according to someembodiments, is an account for a revolving line of credit extended tothe borrower 115 where the limit is determined by using the borrower'sequity in his or her home as collateral. It will be understood that,although much of the description herein refers to accounts held byindividuals, the HELOC account 131 may be held by one or moreindividuals, such as a HELOC account held jointly by husband and wife orparent and child. According to some embodiments, the HELOC account 131provides the borrower 115 with the ability to draw funds from the HELOCaccount 131 up to the determined credit limit during a specified period,with drawn amounts bearing interest until repayment, the interest rategenerally being a variable rate. Depending on the financial institutionmanaging the HELOC account 131, it may or may not be possible for theborrower 115 to utilize the HELOC account 131 directly to makepurchases. For example, in some instances, the financial institution mayissue a payment card to the borrower 115 that may be used to makepurchases where payment for the items purchased comes from drawing theappropriate amount from the HELOC account 131. However, according toother embodiments, the HELOC account 131 may not be utilized to directlymake purchases. In such embodiments, the borrower 115 must draw thefunds as cash or transfer them to another account in order to beginspending.

According to some embodiments, the financial account 133 may be and/orinclude any type of account that can have funds transferred into and outof it and that can be used to make purchases. In one embodiment, thefinancial account 133 is a checking account. Also, it will be understoodthat the financial account 133 may be held by one or more individuals,families, households, social networks, businesses (e.g., corporations,business units within corporations, small businesses, for profitorganizations, non-profit organizations, etc.), and/or other entities.Additionally, it will be understood that, in some embodiments, thefinancial account 133 includes two or more accounts. Thus, in someembodiments, the borrower 115 may wish to utilize two or more financialaccounts in order to dispose of the funds drawn from the HELOC account131 or to make payments to the HELOC account 131. In some embodiments,both of these accounts are owned, controlled, serviced, managed,operated, and/or maintained (collectively referred to herein as“maintained” for simplicity) by a single financial institution.According to some embodiments, the borrower 115 may set up the financialaccount 133 such that it is an account only to be used in connectionwith funds from the HELOC account 131. This may be particularlybeneficial for budgeting purposes in those situations where the HELOCaccount 131 is not configured to be used for direct purchases.

It should be understood that, in some embodiments, some or all of theportions of the system 100 may be combined into a single portion.Specifically, in some embodiments, the user interface system 120 and theaccount management system 130 are combined into a single user interfaceand account management system configured to perform all of the samefunctions of those separate portions as described and/or contemplatedherein. Likewise, in some embodiments, some or all of the portions ofthe system 100 may be separated into two or more distinct portions.Specifically, in some embodiments, the account management system 130 maybe separated into a financial account datastore system configured tostore and/or manage transaction data and user input data, including datarelating to spend categories and spending limits, and a HELOC managementsystem configured to draw funds from the HELOC account 131 and executepayments and transfers of funds among the accounts, track spending ofHELOC funds against the stored limits, calculate and apply interest tothe accounts, and communicate with the account holder. In addition, thevarious portions of the system 100 may be maintained for by the same orseparate parties. For example, as previously mentioned, a singlefinancial institution may maintain the HELOC account 131, the financialaccount 133, and the account management system 130. However, in otherembodiments, the HELOC account 131, the financial account 133, and/orthe account management system 130 may each be maintained by separateentities.

It will also be understood that the system 100 may include and/orimplement any embodiment of the present invention described and/orcontemplated herein. For example, in some embodiments, the system 100 isconfigured to implement any one or more of the embodiments of the method200 described and/or contemplated herein in connection with FIGS. 2A and2B, any one or more of the embodiments of the method 300 describedand/or contemplated herein in connection with FIG. 3, and any one ormore of the embodiments of the method 400 described and/or contemplatedherein in connection with FIG. 4.

Referring now to FIG. 2A, a method 201 of implementing a loan managementtool is provided, in accordance with one embodiment of the presentinvention. As represented by the block 210, the account managementsystem 130 first identifies a loan account associated with the borrower115, such as a HELOC account 131, for which the management tool will beimplemented. According to some embodiments, the borrower 115 utilizesthe user interface system 120 to communicate to the account managementsystem 130, via the communication interface 122 and the network 110,identifying information about the HELOC account 131. For example, insome embodiments, the borrower 115 uses the browser application 127 toaccess the online and/or mobile banking services offered by thefinancial institution through the account management system 130utilizing the online banking application 139. In such embodiments, theonline banking application 139 allows the borrower 115 to utilizeavailable online and/or mobile banking services, such as an onlinebanking account associated with the borrower 115 that provides access tothe borrower's various financial accounts held by the financialinstitution, including the HELOC account 131 and the financial account133, to select the HELOC account 131 for viewing and management via theuser interface 128.

According to some embodiments, the HELOC account 131 may be identifiedat any time that the HELOC account 131 is active in order to implementthe loan management tool. In one embodiment, identification of the HELOCaccount 131 occurs at the same time that the borrower initially opensthe HELOC account. In some embodiments, the borrower 115 does notutilize the user interface system 120 to select the HELOC account 131,but rather communicates to the financial institution a desire toimplement the loan management tool for the HELOC account 131 in adifferent manner, such as in person or via telephone, email, letter,etc. In such embodiments, the financial institution uses the identifyinginformation provided by the borrower 115 to identify the HELOC account131.

Next, as represented by the block 202, the account management system 130receives budgeting preference information from the borrower 115. In someembodiments, the account management system 130 utilizes the onlinebanking application 139 to provide the borrower 115 with access to hisor her HELOC account 131 such that the borrower 115 can check balances,payments, and interest, conduct transfers, and input certaininformation, among other activities. Therefore, according to someembodiments, the borrower 115 utilizes the browser application 127 andthe user interface system 120 to access his or her online bankingaccount and the HELOC account 131 in particular, and input into theaccount management system 130 the borrower's budgeting preferenceinformation. For example, once the HELOC account 131 has been identifiedby the account management system 130 and opened in online banking forviewing and management by the borrower 115, the account managementsystem 130 may give the borrower 115 the option of defining and/orselecting particular spend categories applicable to the HELOC account131. As used herein, “spend categories” refer to the spend categories inwhich the borrower 115 intends to use funds drawn from the HELOC account131, such as education, debt consolidation, home improvement, medicalbills, miscellaneous expenditures or cash, etc. Therefore, according tosome embodiments, the spend categories offer a methodology forcategorizing spending of the borrower's available HELOC funds in orderto implement a budgeting strategy with respect to the HELOC account 131.According to some embodiments, the borrower 115 defines and/or selectsat least one spend category for the HELOC account 131 and defines and/orselects a spending limit for that spend category according theborrower's specific budget. According to other embodiments, the borrower115 defines and/or selects at least two spend categories for the HELOCaccount 131 and defines and/or selects a spending limit for each of theat least two spend categories according the borrower's budget.

Thus, according to some embodiments, the borrower 115 may access theHELOC account 131 via the browser application 127 by utilizing theonline and/or mobile banking services of the financial institutionprovided by the account management system 130 through use of the onlinebanking application 137, and define and/or select the appropriate spendcategories and associated spending limits. Referring now to FIGS. 5A and5B, exemplary outputs of the account management application 137 visibleto the borrower 115 via the user interface 128 when the borrower hasaccessed his or her HELOC account via online banking provided by theonline banking application 139. FIGS. 5A and 5B demonstrate the mannerin which the spend categories and limits may be input into and/orupdated in the account management system 130 are provided, according toone embodiment of the present invention. As shown in FIG. 5A, theborrower 115 may use the user interface 128 to enter in an identifyingname for each spend category. Once names for the spend categories havebeen entered, when the borrower 115 accesses the HELOC account 131 viaonline banking and chooses to view his or her spend categories, theborrower 115 may be presented with the various spend categories of theHELOC, as named by the borrower. In addition to naming each spendcategory, as shown in FIG. 5A, the borrower 115 may select theparticular spend category for the named spend category, i.e. education,cash or miscellaneous expenses, medical expenses, etc. This informationwill assist the account management application 137 in identifyingtransactions that fall within particular spend categories so thattracking progress on the budget of the spend categories may automatedand up-to-date, as described in greater detail below.

As shown in FIG. 5B, the borrower 115 may also enter spending limitsapplicable to each selected spend category, according to one embodimentof the present invention. Thus, as shown in FIG. 5B, for a HELOC havinga $200,000 credit limit, the borrower may apportion the total $200,000among the different spend categories, for example, $100,000 to a generalpurpose spend category, $25,000 to a debt consolidation spend category,$35,000 to a home remodeling project spend category, $30,000 to acollege expenses spend category, and $10,000 to an overdraft protectionspend category. In some embodiments, the sum of the spend limits enteredfor each selected spend category will equal the total credit limit ofthe HELOC account 131. It should be understood that FIGS. 5A and 5Bprovide only one example of the manner in which the budgeting preferenceinformation may be entered into the account management system 130, andother methods may be utilized, including communicating the preferenceinformation to the financial institution in person, by telephone, email,or other communication method.

In some embodiments, the budgeting preference information input by theborrower 115 may also include preference information regarding alertsand notifications to be sent to the borrower. For example, in someembodiments, the borrower 115 may record a preference that he or shereceive an alert in the event the borrower 115 either reaches or iswithin a predefined amount away (whether an absolute number or apercentage of the overall spending limit) the credit limit of the HELOCand/or the spending limit of one or more spend categories. According toother embodiments, the borrower 115 may elect to receive an alert in theevent a payment is missed, the applicable interest rate (whether on theoverall HELOC or a particular spend category) increases above apredefined rate, the overall interest due on the HELOC or a particularspend category reaches a predefined minimum, or upon any otheroccurrence that the borrower 115 desires to know about or be reminded.According to still other embodiments, the borrower 115 may input apreference to receive notification if and when the borrower is eligibleto add additional credit to the HELOC account 131, for example, due toincreasing home equity. The foregoing and other preferences regardingalerts and notifications may be input into the account management system130 as part of the budgeting preference information. Indeed, accordingto some embodiments of the present invention, the alert and notificationsettings are highly configurable by the borrower 115 such that theborrower 115 may elect to receive notifications or alerts upon theoccurrence of any of countless events.

Referring again to FIG. 2A, as represented by the block 203, accordingto some embodiments, the account management system 130 stores thereceived budgeting preference information, including identifyinginformation for at least two spend categories and the associatedspending limits for such spend categories, in the datastore 138 inconnection with information relating to the HELOC account 131. In someembodiments, this information is stored in the datastore 138 such thatit can be used by the account management application 137 to track thespending of the borrower 115 using funds from the HELOC account 131against the specified spending limits and spend categories selected bythe borrower 115. According to some embodiments, the account managementsystem 130 segments the HELOC account 131 into one or more spendcategories, and sets spending limits associated with the spendcategories. In some embodiments, as funds drawn from the HELOC account131 are spent by the borrower 115, the spend categories will acquirebalances that are a component of the overall balance of the HELOCaccount 131. Thus, by segmenting the HELOC account 131, the accountmanagement system creates conceptual subaccounts within the overallHELOC account that have their own balances. In addition, as discussedfurther below, the borrower 115 may choose to apply different paymentstrategies to different spend categories such that the balances oncertain spend categories are paid off sooner than others.

In this regard, according to some embodiments, and as represented by theblock 204, the account management system 130 receives an indication thata purchase has been made using funds from the HELOC account 131. As usedherein, a “purchase” is any transaction that the borrower 115 engages inwhere the borrower 115 spends money. In some embodiments, the borrower115 may communicate to the account management system 130 that aparticular purchase was made using funds from the HELOC account 131,whether by using the user interface 128 and the online bankingapplication 139 or by other communication methods. Thus, in someembodiments, the borrower 115 may make a purchase using the financialaccount 133, whether by payment card, check, mobile communicationsdevice, or other, where funds in the financial account were drawn fromthe HELOC account 131. The borrower 115 may then access his or heronline banking account, which may include both the financial account 133and the HELOC account 131, via the browser application 127, and locatethe record of the purchase within the financial account 133 and use thisrecord to link the purchase to the HELOC account 131 such that thepurchase is recorded as an expenditure relating to the HELOC account131. The foregoing method may be utilized, for example, in thosecircumstances where the borrower 115 is unable to make purchasesdirectly from the HELOC account 131 and the financial account 133 is notfunded solely by drawing upon the HELOC account 131.

In other embodiments, the account management system 130 is configured toautomatically recognize that certain purchases that it processes for theborrower 115 have been made using funds from the HELOC account 131. Forexample, in some embodiments, the borrower 115 is able to make purchasesusing the HELOC account 131 directly, for example, by using a paymentcard or checks issued by the financial institution or a mobilecommunications device containing an application provided by thefinancial institution that draw upon the HELOC account 131 each timethey are used to make purchases. Alternatively, in some embodiments,even if the HELOC account 131 may not be used to directly makepurchases, the borrower 115 has established the financial account 133 asan account that will be funded exclusively with funds drawn from theHELOC account 131. This arrangement may be communicated to the financialinstitution and stored in the memory 136 of the account managementsystem 130 in relation to both the financial account 133 and the HELOCaccount 131. In such embodiments, every time that the financial account133 is used to make a purchase, the account management system 130,utilizing the account management application 137, determines that thepurchase was made using funds from the HELOC account 131.

In some embodiments, the account management system 130 is configured toprocess the purchase by debiting the HELOC account 131 or the financialaccount 133 associated with the borrower 115 when it receives a paymentrequest from the point of sale device 140, for example, when thepurchase is made using a payment card associated with the HELOC account131 or the financial account 133. In such embodiments, by processing thepurchase made by the borrower 115 by drawing funds from the HELOCaccount 131 or debiting the financial account 133, the accountmanagement system 130 can determine that the purchase was made usingfunds from the HELOC account 131. Thus, in such embodiments, theindication that a purchase was made using funds from the HELOC is simplythe payment processing information that is sent to the accountmanagement system 130 from the point of sale device 140.

Next, as represented by the block 205 and according to some embodimentsof the present invention, the account management system 130 utilizes theaccount management application 137 to associate the purchase with aparticular spend category. In those embodiments where the purchase isattributed to the HELOC account 131 based on a communication or otherindication from the borrower 115, the borrower 115 may also indicate theparticular spend category that the purchase relates to. For example, theborrower 115 may input into the account management system 130 via onlinebanking an indication that a purchase of general contracting servicesmade using the financial account 133 was made with HELOC funds andshould be attributed to the pre-selected home improvement spendcategory. Indeed, the borrower 115 may attribute a purchase made usingHELOC funds to the appropriate spend category at any time, eitherthrough online banking or through other communication with the financialinstitution, whether the purchase was made using the HELOC account 131,the financial account 133, or otherwise.

According to other embodiments, the account management system 130 mayautomatically determine, based on information from the point of saledevice 140, the spend category to which the purchase relates. Forexample, in the event the purchase is made using the HELOC account 131or the financial account 133 (where the financial account is fundedexclusively by HELOC funds) at an educational institution or thepurchase is a payment to an educational lender, the account managementsystem 130 will automatically associate the purchase with the spendcategory for education. Because the account management system 130 isprocessing the payment, it receives certain information about theidentity of the vendor/recipient of the payment. This information isanalyzed by the account management application 137, which is configuredto determine from the given information the nature of the purchase (asused herein, a “purchase” includes any type of payment made using theHELOC funds), and assign the purchase to a particular spend category.Thus, the account management system 130, utilizing the accountmanagement application 137, is configured to categorize the purchasesmade using funds from the HELOC account 131 within the spend categoriesof the borrower-defined spend categories.

As represented by the block 206, according to some embodiments of thepresent invention, once the correct spend category has been determinedbased on the nature of the purchase made, the amount of the purchase isadded to the outstanding balance of that spend category. In someembodiments, just as the sum of the spending limits for the spendcategories adds up to the total credit limit of the HELOC account 131,according to some embodiments, the sum of the outstanding balances forthe spend categories adds up to the total outstanding balance for theHELOC account 131. Thus, the spend categories serve to break down theoverarching HELOC into conceptual subaccounts for the purposes ofbudgeting and managing spending of the HELOC funds. For example, eachindividual spend category within the HELOC account 131 has its ownspending limit, as set by the borrower 115, and its own outstandingbalance, based on the total amount of purchases made using HELOC fundsthat fall within that spend category. Furthermore, as described ingreater detail below, each spend category may have its own interest rateand payment terms associated with it, including monthly payment amountand anticipated payoff date.

As the borrower 115 makes purchases, the bank computer system 130allocates the purchases to the spend categories as described above. Theborrower 115 may utilize online banking to view the status of theindividual spend categories with regard to outstanding balance,remaining available funds, etc., and determine how the borrower'sspending and payments affect both the individual spend categoriesselected by the borrower as well as the overall HELOC.

Referring now to FIG. 6, an exemplary output of the account managementapplication 137 presenting an analysis of the spending of HELOC funds byspend categories is provided. The output of FIG. 6 may be visible to theborrower 115 via the user interface system 120 when the user hasaccessed online banking to view and/or manage his or her HELOC account131. As shown in FIG. 6, the account management system 130 maintainsrecords for the outstanding balance for each defined spend category.This allows the borrower 115 to easily determine how well the borrower115 is staying within budget, or, in other words, how close the borroweris to the predefined spending limit for each spend category, as well aslearn his or her spending patterns and where the funds from the HELOCaccount 131 have thus far been spent, regardless of how they wereallocated.

Referring again to FIG. 2A, once the purchase has been correctlyassigned to a spend category by the account management system 130,whether automatically or at the direction of the borrower 115, and thebalance and available funds of the spend category have been adjustedaccordingly, as represented by the block 207, the account managementsystem 130 determines if the borrower has met or exceeded the predefinedspend amount in that spend category (or the spending has reached a levelwhere it is within a certain amount or amounts to a certain percentageof the spend limit for such spend category) such that an alert to theborrower is triggered. According to some embodiments, the determinationof whether an alert is to be sent to the borrower 115 is based on thepreference information previously provided by the borrower 115 andstored in the datastore 138. Alternatively, the account managementsystem 130 may have default alert settings that provide for alerts incertain situations even if not specially selected by the borrower 115.In the event that the predefined spend amount in the particular spendcategory has been met or exceeded, the account management system 130,according to some embodiments and as represented by the block 208,communicates an alert to the borrower 115 providing notification of thisfact. In some embodiments, the alert may be transmitted to the userinterface system 120 via the network 110. In other embodiments, thealert may be posted to the online banking account of the borrower 115such that the borrower will view the alert the next time he or sheaccesses the HELOC account 131 via online banking.

Referring now to FIG. 2B, according to some embodiments and asrepresented by the block 209, the account management system 130 receivesa payment on the HELOC account 131. As represented by the block 210, theaccount management system 130 further receives an indication that thepayment is associated with a particular spend category. For example, theborrower 115 may submit a payment to the HELOC account 131 from thefinancial account 133 using the browser application 127 and the onlinebanking application 139. At the time the borrower 115 submits thepayment, the borrower may indicate that the payment is to be applied toone or more spend categories within the HELOC account 131. For example,the borrower 115 may allocate a certain portion of the payment to afirst spend category and another portion of the payment to a secondspend category. In some embodiments, the account management application137 and the online banking application 139 make it possible for theborrower to make selections regarding the allocation of the paymentamong the spend categories at the time that the payment is submitted.

Once the correct spend category or spend categories to apply the paymenthave been determined, according to some embodiments and as representedby the block 211, the account management system 130 reduces theoutstanding balance of the chosen spend categories by the amount of thepayment that was directed to such spend categories. Thus, according tosome embodiments, just as spending may be broken down across the spendcategories for management, the payments may be allocated among the spendcategories at the discretion of the borrower 115. For example, theborrower 115 may determine that 100% of a particular payment will beapplied to the education spend category. While the allocation may bepurely conceptual in some embodiments, as the overall balance andremaining credit in the HELOC account 131 will not differ regardless ofwhich spend category receives the payment, providing borrowers with theability to allocate their payments in this manner advantageously allowsborrowers to more easily implement their own budgeting strategies, asthey can pay down certain spend categories in order to earn the abilityto spend more in such category according to their budget.

According to some embodiments of the present invention, the accountmanagement system 130 is configured to provide the borrower 115 withassistance and education in determining how to manage the HELOC account131 and the various chosen spend categories within the HELOC account131. Thus, as represented by the block 212, the account managementsystem 130 receives an input that includes at least one of a potentialmonthly payment amount, potential payoff date, potential interest rate,or potential total months of payments. In some embodiments, the borrower115 utilizes the online banking application 139 via the browserapplication 127 to query the account management application 137 as towhat effect the provided input would have on the terms applicable to theoverall HELOC account 131 or one or more spend categories therein.Indeed, the input provided by the borrower 115 may apply to a spendcategory or may apply to the overall HELOC. In response to the input,according to some embodiments and as represented by the block 213, theaccount management system 130, utilizing the account managementapplication 137, will return at least one of the resulting monthlypayment amount, payoff date, total months of payment, or total savedinterest. Thus, the account management system 130 utilizes the terminput by the borrower 115 to determine what the remaining terms of theloan would be if the borrower 115 adhered to the input term.

As an example, the borrower 115 may enter into the account managementsystem 130 in relation to a particular spend category or the overallHELOC a desired monthly payment amount. The account managementapplication 137 will use this information to determine a payoff date,the total number of months that payments may be made, and/or the totalamount of interest saved by the payoff date, in the event the proposedmonthly payment amount is not an interest-only payment. The accountmanagement application 137 will utilize the online banking application139 to present these results to the borrower 115 via the borrower'sonline banking account. As another example, the borrower 115 may enterinto the account management system 130 a proposed interest rate and apayment term that will apply to a particular spend category. The accountmanagement application 137 will use the proposed interest rate and termto calculate the monthly payments that will be required to pay off thespend category balance. The account management system 130 will presentthese results to the borrower 115.

Referring now to FIGS. 7A and 7B, exemplary outputs of the accountmanagement system 130 with regard to the just-described steps areprovided. As shown in FIG. 7A, according to some embodiments, theborrower 115 may select a particular spend category within the HELOCaccount 131 and enter the months to pay, payment amount each month, orpayoff date. The account management application 137 will calculate thesaved interest and the remaining terms not entered by the borrower 115and the account management system 130 will present these calculatedresults to the borrower 115 via online banking. As shown in FIG. 7B, theborrower may allocate the monthly payment amount for the overall HELOCaccount 131 among the various defined spend categories.

Referring now to FIG. 3, a method 300 of implementing a loan managementtool is provided, in accordance with one embodiment of the presentinvention. As represented by the block 301, the account managementsystem 130 identifies the HELOC account 131 of the borrower 115. Asdescribed above, identification may take place based on informationinput by the borrower 15 into the online banking application 139 orotherwise communicated to the financial institution by the borrower 115.

According to some embodiments, the HELOC account 131 has a firstinterest rate and a first term associated with it. With regard to theinterest rate, most HELOC accounts are offered by lenders to borrowerswith a variable interest rate that is based on the prime rate. Thisinterest rate will apply to all funds drawn from the HELOC by theborrowers such that the borrowers must pay back the amount drawn plusinterest on the amount drawn calculated using the relevant interestrate. With regard to the term, a HELOC account is generally extended toa borrower with a particular term, or draw period, specified. The termis therefore the period during which the borrower may draw funds fromthe HELOC, and at the conclusion of the term, all funds, plus allaccrued interest, must be repaid to the lender. Thus, the first interestrate applicable to the HELOC account 131 is the interest rate that willapply to the funds drawn from the HELOC account 131 by the borrower 115,and the first term is the time period during which the borrower 115 maydraw funds from the HELOC account 131. At expiration of the first term,all funds drawn from the HELOC, and all interest accrued on those funds,must be repaid into the HELOC account 131.

As represented by the block 302, according to some embodiments, theaccount management system 130 receives an indication from the borrower115 that the borrower 115 requests that a second interest rate and asecond term apply to a particular spend category within the HELOCaccount 131. The borrower 115 may utilize the user interface system 120to communicate this desire to the account management system 130,including by utilizing the browser application 127 of the user interfacesystem 120 to access the online banking services provided by the onlinebanking application 139 of the account management system 130. Thus, theborrower 115 wants the debt within a particular spend category to havedifferent terms attached to the repayment of funds drawn from the HELOCaccount 131 that are spent within that spend category. For example, inthe event the prime rate is increasing, the borrower 115 may wish to tieoff one piece of debt, such as an education spend category, to avoid thevariable interest rate applicable to the overall HELOC account 131. Asanother example, the borrower 115 may desire to pay off the HELOC fundsused for a home improvement spend category at an earlier time than thetime when all funds drawn from the HELOC account 131 become due (atexpiration of the first term), so that the debt associated with thatspending is closed out earlier and more equity may be returned to thehome. Therefore, according to some embodiments, the borrower 115communicates a request that different repayment terms apply to aparticular spend category within the HELOC account 131.

As represented by the block 303, in some embodiments, the accountmanagement system 130 responds to the request from the borrower 115 byassociating a second interest rate with the spend category. Therefore,rather than generating an entirely separate account that is a subaccountof the overall HELOC account, which would necessitate separatestatements and separate payments by the borrower 115, the secondinterest rate is imposed on the first spend category withoutconstructing a separate account. However, instead of the spend categorybeing a conceptual construction used by the financial institution inorder to assist the borrower with implementing budgeting, spending, andpayment strategies as discussed previously, in this instance, the firstspend category becomes an actual subsection of the overall HELOC account131 whose balance is treated differently from the remaining balance ofthe HELOC account 131. In particular, the second interest rate appliesto the balance of the first spend category while the first interest rateapplies to the remaining balance of the HELOC account 131, wherein theremaining balance of the HELOC account does not include the balance ofthe first spend category.

According to some embodiments, and as represented by the block 304, apayment is received by the account management system 130 that isdirected to the HELOC account 131 and that comprises an interestcomponent that was calculated at least in part based on the secondinterest rate. In some embodiments, the payment comprises a firstportion based on the first interest rate and a second portion based onthe second interest rate. The first portion is used to pay down theremaining balance in the HELOC account (i.e. the balance not associatedwith or attributable to the spend category) while the second portion isused to pay down the balance of the first spend category. Thus,according to some embodiments and as represented by block 305, at leasta portion of the payment is applied to the first spend category.According to some embodiments, the allocation of the payment between thefirst spend category balance and the remaining HELOC account 131 balanceis made in accordance with rules stored in the memory 136 of the accountmanagement system 130. For example, the rules may include a direction toapply the payment first to pay the interest components of both the firstspend category balance and the remaining HELOC account 131 balance. Oncethe interest components are paid, any portion of the payment remainingmay be applied to the balance of the first spend category and theremaining balance of the HELOC account 131 in any proportion. In someembodiments, these rules were communicated to the account managementsystem 130 by the borrower 115. In other embodiments, the allocation ofthe payment may be made in accordance with an instruction from theborrower 115, such as at the time of payment. For example, where thefirst interest rate is higher than the second interest rate, the paymentmay be allocated such that the payment is first directed to satisfyingany outstanding balance that is based on the first interest rate, thendirected to satisfying any outstanding balance that is based on thesecond interest rate.

Referring now to FIG. 4, a method 400 of implementing a loan managementtool is provided, in accordance with one embodiment of the presentinvention. In some embodiments, the loan management tool is configuredto identify a HELOC account associated with a home, determine a currentequity value associated with the home, and generate a notification thatadditional credit may be added to the HELOC account. As part ofdetermining the borrower's current equity in the home, according to someembodiments, the account management system 130 determines the total debtand credit held by the borrower that is secured by the home ascollateral. In addition, the account management system 130 determinesthe current market value of the home that is being used as collateral.The difference between these two values may be used to determine ifadditional credit may be added to the HELOC account 131. As representedby the block 401, the account management system 130, utilizing theaccount management application 137, determines the credit limit of theHELOC account 131. This information should be stored in the datastore138 in connection with the HELOC account 131. Next, as represented bythe block 402, the account management system 130 determines the amountof the mortgage that the borrower 115 has on the home used as collateralfor the HELOC account 131. This may be accomplished in a number of ways.First, where the mortgage is maintained by the same financialinstitution as the HELOC account 131, the account management system 130may have direct access to the relevant information about the mortgage,indeed, it may be stored in the memory 136 of the account managementsystem 130. In other embodiments, the account management system 130 mayinterface via the network 110 with the real estate data source 150,whether the holder of the mortgage or otherwise, that can provide theaccount management system 130 with continuous or periodic data feedscontaining the information about the borrower's mortgage.

In some embodiments, as represented by the block 403, the accountmanagement system 130 determines the value of the home. In particular,according to some embodiments, the account management application 137 isconfigured to instruct the communication interface 132 of the accountmanagement system 130 to interface with the real estate data source 150to obtain the estimated home value for the home used by the borrower 115as collateral for the HELOC account 131. It may obtain this data on acontinuous or periodic basis, or on demand of the borrower 115, forexample, when the borrower makes a request via online banking that theaccount management system determine if additional credit may be added tothe HELOC account 131. Next, as represented by the block 404, theaccount management system 130 compares the home value to the mortgageand the HELOC, and applies any applicable rules of the financialinstitution (i.e. the borrower must retain a certain amount of equity inthe home) to determine if additional credit can be extended to theborrower 115. In the event the account management system determines thatadditional credit is available, according to the alert preferencesstored by the borrower 115 in connection with the HELOC account 131,this information will be communicated to the borrower 115. In thisregard, referring now to FIGS. 8A and 8B, exemplary outputs of theaccount management system 130 are provided. As shown in FIGS. 8A and 8B,the account management system 130 may track and present to the borrower115 an updated accounting of the borrower's mortgage, HELOC (bothoutstanding balance and liability), and home value. Furthermore, theaccount management system 130 may present to the borrower 115 theresults of its calculations as to whether there is any availability foran increase to the credit limit of the HELOC account 131.

While certain exemplary embodiments have been described and shown in theaccompanying drawings, it is to be understood that such embodiments aremerely illustrative of and not restrictive on the broad invention, andthat this invention not be limited to the specific constructions andarrangements shown and described, since various other changes,combinations, omissions, modifications and substitutions, in addition tothose set forth in the above paragraphs, are possible. Those skilled inthe art will appreciate that various adaptations and modifications ofthe just described embodiments can be configured without departing fromthe scope and spirit of the invention. Therefore, it is to be understoodthat, within the scope of the appended claims, the invention may bepracticed other than as specifically described herein.

1. A computer-implemented method comprising: storing informationrelating to a loan account associated with a borrower in a storagedevice; segmenting, performed by a processor of a computing device, theloan account into two or more spend categories, wherein the loan accounthas one interest rate and the two or more spend categories have at leastone interest rate that is different than the one interest rate of theloan account; allocating, performed by the processor of the computingdevice, purchases made by the borrower to at least one of the two ormore spend categories; receiving a first payment for the purchasesassociated with a first spend category of the two or more spendcategories; applying, performed by the processor of the computingdevice, the first payment to the first spend category such that thefirst spend category is paid in full; calculating, performed by theprocessor of the computing device, the value of collateral associatedwith the loan account; and determining, performed by processor of acomputing device, that additional credit is available for the loanaccount based on the calculated value of the collateral.
 2. The computerimplemented method of claim 1, wherein said storing, segmenting, andallocating are performed on a credit line type loan account.
 3. Thecomputer implemented method of claim 1, wherein said storing,segmenting, and allocating are performed on a HELOC loan account.
 4. Themethod of claim 1, wherein allocating purchases made by the borrowercomprises: receiving, via a processor of a computing device, anindication that a purchase has been made using funds drawn from the loanaccount; associating, via a processor of a computing device, thepurchase with one of the one or more spend categories; and recording,via a processor of a computing device, in connection with the firstspend category an increase in a balance of the spend category equal tothe amount of the purchase.
 5. The method of claim 4, wherein theindication that the purchase has been made is received from a deviceeffectuating the purchase, and wherein said associating the purchasecomprises associating the purchase is associated with one of the one ormore spend categories based on information provided by the device. 6.The method of claim 1, further comprising: receiving a payment; andallocating, via a processor of a computing device, at least a portion ofthe payment to at least one of the one or more spend categories.
 7. Themethod of claim 1, wherein the loan account is segmented into at leasttwo spend categories and further comprising: receiving a payment;receiving an indication that a first portion of the payment should beapplied to a first spend category and a second portion of the paymentshould be applied to a second spend category; and recording, via aprocessor of a computing device, in connection with the first spendcategory a decrease in a first balance of the first spend category inthe amount of the first portion of the payment and a decrease in asecond balance of the second spend category in the amount of the secondportion.
 8. The method of claim 1, wherein segmenting the loan accountinto one or more spend categories comprises segmenting the loan whereone or more spend categories is one of education, home improvement, debtconsolidation, miscellaneous, and medical bills.
 9. The method of claim1, further comprising: storing purchase information in connection witheach spend category a spending limit in a storage device; andgenerating, via a processor of a computing device, a notification to theborrower when the difference between a balance of one of the one or morespend categories and the spending limit for the spend category is eitherzero or less than a predefined amount.
 10. The method of claim 1,further comprising: receiving from the borrower an input; andcalculating, via a processor of a computing device and based on theinput, an output, wherein the output comprises at least one of theanticipated payoff date, the monthly payment amount, and the total savedinterest.
 11. The method of claim 10, wherein said receiving from theborrower an input comprises receiving, via a processor of a computingdevice, an input that comprises one of a desired payoff date, a desiredmonthly payment amount, and a total saved interest.
 12. Acomputer-implemented method comprising: storing information relating toa HELOC account associated with a borrower in a storage device;segmenting, performed by a processor of a computing device, the HELOCaccount into two or more spend categories, wherein the HELOC account hasone interest rate and the two or more spend categories have at least oneinterest rate that is different than the one interest rate of the HELOCaccount; allocating, processor of a computing device, purchases made bythe borrower to at least one of the two or more spend categories;receiving a payment; allocating, performed by the processor of thecomputing device, a first portion of the payment is to a first spendcategory of the two or more spend categories and a second portion of thepayment to a second spend category of the two or more spend categories;applying, performed by the processor of the computing device, the firstportion of the payment to the first spend category such that the firstspend category is paid in full; and calculating, performed by theprocessor of the computing device, the value of collateral associatedwith the HELOC account; and determining, performed by the processor ofthe computing device, that additional credit is available for the HELOCaccount based on the calculated value of the collateral.
 13. The methodof claim 12, wherein allocating purchases made by the borrowercomprises: receiving an indication that a purchase has been made usingfunds drawn from the HELOC account; associating, via a processor of acomputing device, the purchase with one of the two or more spendcategories; and recording, via a processor of a computing device, inconnection with the first spend category an increase in a balance of thespend category equal to the amount of the purchase.
 14. The method ofclaim 13, wherein allocating the first and second portions of thepayment comprises: receiving the indication that a first portion of thepayment should be applied to a first spend category and the secondportion of the payment should be applied to a second spend category; andrecording, via a processor of a computing device, in connection with thefirst spend category a decrease in a first balance of the first spendcategory in the amount of the first portion of the payment and adecrease in a second balance of the second spend category in the amountof the second portion.
 15. The method of claim 12, further comprising:receiving from the borrower an input; and calculating, via a processorof a computing device and based on the input, an output, wherein theoutput comprises at least one of the anticipated payoff date, themonthly payment amount, and the total saved interest.
 16. The method ofclaim 15, wherein said receiving from the borrower an input comprisesreceiving an input that comprises one of a desired payoff date, adesired monthly payment amount, and a total saved interest.
 17. A systemcomprising: a storage device comprising stored therein informationrelating to a loan account associated with a borrower; computer readableprogram code stored on said storage device or a separate storage device;and a processor communicably coupled to said storage device or storagedevices, wherein said computer readable program code comprisesinstructions that when operated by said processor, causes said processorto: segment the HELOC account into two or more spend categories, whereinthe HELOC account has one interest rate and the two or more spendcategories have at least one interest rate that is different than theone interest rate of the HELOC account; allocate purchases made by theborrower to at least one of the two or more spend categories; receive afirst payment for the purchases associated with a first spend categoryof the two or more spend categories; apply the first payment to thefirst spend category such that the first spend category is paid in full;and calculate the value of collateral associated with the loan account;and determine that additional credit is available for the loan accountbased on the calculated value of the collateral.
 18. The system of claim17, wherein the loan account is a credit line type loan account.
 19. Thesystem of claim 17, wherein the loan account is a HELOC loan account.20. The system of claim 17, further comprising a communication interfaceconfigured to receive an indication that a purchase has been made usingfunds drawn from the loan account, wherein said computer readableprogram code further comprises instructions that when operated by saidprocessor, causes said processor to: associate the purchase with one ofthe one or more spend categories; and record in connection with thefirst spend category an increase in a balance of the spend categoryequal to the amount of the purchase.
 21. The system of claim 17, whereinsaid computer readable program code further comprises instructions thatwhen operated by said processor, causes said processor to: associate apayment with the loan account; and allocate at least a portion of thepayment to at least one of the one or more spend categories.
 22. Thesystem of claim 17, wherein at least one of the one or more spendcategories is one of education, home improvement, debt consolidation,miscellaneous, and medical bills.
 23. The system of claim 17, whereinsaid computer readable program code further comprises instructions thatwhen operated by said processor, causes said processor to: store inconnection with each spend category a spending limit; and generate anotification to the borrower when the difference between a balance ofone of the one or more spend categories and the spending limit for thespend category is either zero or less than a predefined amount.
 24. Thesystem of claim 17, further comprising a communication interfaceconfigured to receive an input from the borrower, wherein said computerreadable program code further comprises instructions that when operatedby said processor, causes said processor to: calculate, based on theinput, an output, wherein the output comprises at least one of theanticipated payoff date, the monthly payment amount, and the total savedinterest.
 25. The system of claim 24, wherein the input comprises one ofa desired payoff date, a desired monthly payment amount, and a totalsaved interest.
 26. A computer program product comprising acomputer-readable non-transitory medium having computer-executablecomputer program code portions stored therein, wherein thecomputer-executable program code portions comprise: a first program codeportion configured to store information relating to a loan accountassociated with a borrower in a storage device; a second program codeportion configured to segment the loan account into two or more spendcategories, wherein the loan account has one interest rate and the twoor more spend categories have at least one interest rate that isdifferent than the one interest rate of the loan account; a thirdprogram code portion configured to allocate purchases made by theborrower to at least one of the two or more spend categories a fourthprogram code portion configured to receive a first payment for thepurchases associated with a first spend category of the two or morespend categories; a fifth program code portion configured to apply thefirst payment to the first spend category such that the first spendcategory is paid in full; and a sixth program code portion configured tocalculate the value of collateral associated with the loan account; anda seventh program code portion configured to determine that additionalcredit is available for the loan account based on the calculated valueof the collateral.
 27. The computer program product of claim 26, whereinthe computer-executable program code portions further comprise: aneighth program code portion configured to associate a payment with theloan account; and a ninth program code portion configured to apply atleast a portion of the payment to at least one of the one or more spendcategories.
 28. The computer program product of claim 26, wherein thecomputer-executable program code portions further comprise: an eighthprogram code portion configured to store in connection with each spendcategory a spending limit; and a ninth program code portion configuredto generate a notification to the borrower when the difference between abalance of one of the one or more spend categories and the spendinglimit for the spend category is either zero or less than a predefinedamount.
 29. The computer program product of claim 26, wherein thecomputer-executable program code portions comprise: an eighth programcode portion configured to receive from the borrower an input; and aninth program code portion configured to calculate, based on the input,an output, wherein the output comprises at least one of the anticipatedpayoff date, the monthly payment amount, and the total saved interest.